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PART VI |
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CREDITS AND REPAYMENTS |
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Tax credits |
| | 61. - (1) The Commissioners may, in accordance with the following provisions of this paragraph, by regulations make provision in relation to cases where-
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(a) after a taxable supply has been made, there is such a change in circumstances or any person's intentions that, if the changed circumstances or intentions had existed at the time the supply was made, the supply would not have been a taxable supply; |
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(b) after a supply of a taxable commodity is made on the basis that it is a taxable supply, it is determined that the supply was not (to any extent) a taxable supply; |
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(c) after a taxable supply has been made on the basis that it was neither a half-rate supply nor a reduced-rate supply, it is determined that the supply was (to any extent) a half-rate or reduced-rate supply; |
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(d) levy is accounted for on a half-rate supply as if the supply were neither a half-rate supply nor a reduced-rate supply; |
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(e) after a charge to levy has arisen on a supply of a taxable commodity ("the original commodity") to a person who uses the commodity supplied in producing taxable commodities primarily for his own consumption, that person makes supplies of any of the commodities in whose production he has used the original commodity; |
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(f) after a person has become entitled to a debt as a result of making a taxable supply, the debt turns out to be bad (in whole or in part); |
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(g) the making of a taxable supply gives rise to a double charge to levy within the meaning of paragraph 20. |
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(2) The provision that may be made in relation to any such case as is mentioned in sub-paragraph (1) is provision-
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(a) for such person as may be specified in the regulations to be entitled to a tax credit in respect of any levy charged on the supply (or, in such a case as is mentioned in sub-paragraph (1)(g), one of the supplies) in question; |
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(b) for a tax credit to which any person is entitled under the regulations to be brought into account when he is accounting for levy due from him for such accounting period or periods as may be determined in accordance with the regulations; and |
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(c) for a person entitled to a tax credit to be entitled, in any prescribed case where he cannot bring the tax credit into account so as to set it against a liability to levy, to a repayment of levy of an amount so determined. |
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(3) Regulations under this paragraph may contain any or all of the following provisions-
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(a) provision making any entitlement to a tax credit conditional on the making of a claim by such person, within such period and in such manner as may be prescribed; |
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(b) provision making entitlement to bring a tax credit into account, or to receive a repayment in respect of such a credit, conditional on compliance with such requirements (including the making of a claim) as may be determined in accordance with the regulations; |
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(c) provision requiring a claim for a tax credit to be evidenced and quantified by reference to such records and other documents as may be so determined; |
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(d) provision requiring a person claiming any entitlement to a tax credit to keep, for such period and in such form and manner as may be so determined, those records and documents and a record of such information relating to the claim as may be so determined; |
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(e) provision for the withdrawal of a tax credit where any requirement of the regulations is not complied with; |
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(f) provision for interest at the rate applicable under section 197 of the Finance Act 1996 to be treated as added, for such period and for such purposes as may be prescribed, to the amount of any tax credit; |
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(g) provision for determining whether, and to what extent, a debt is to be taken as bad; |
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(h) provision for the withdrawal of a tax credit to which a person has become entitled in a case within sub-paragraph (1)(f) where any part of the debt that has been taken to be bad falls to be regarded as not having been bad; |
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(i) provision for determining whether, and to what extent, any part of a debt that has been taken to be bad should be regarded as not having been bad; |
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(j) provision for anything falling to be determined in accordance with the regulations to be determined by reference to a general or specific direction given in accordance with the regulations by the Commissioners. |
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(4) Regulations made under this paragraph shall have effect subject to the provisions of paragraph 63.
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Repayments of overpaid levy |
| | 62. - (1) Where a person has paid an amount to the Commissioners by way of levy which was not levy due to them, they shall be liable to repay the amount to him.
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(2) The Commissioners shall not be liable to repay an amount under this paragraph if, or to the extent that, any person has become entitled to a tax credit in respect of that amount by virtue of tax credit regulations.
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(3) The Commissioners shall not be liable to repay an amount under this paragraph except on the making of a claim for that purpose.
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(4) A claim under this paragraph must be made in such form and manner, and must be supported by such documentary evidence, as may be required by regulations made by the Commissioners.
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(5) The preceding provisions of this paragraph are subject to the provisions of paragraph 63.
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(6) Except as provided by this paragraph or tax credit regulations, the Commissioners shall not, by virtue of the fact that it was not levy due to them, be liable to repay any amount paid to them by way of levy.
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Supplemental provisions about repayments etc. |
| | 63. - (1) The Commissioners shall not be liable, on any claim for a repayment of levy, to repay any amount paid to them more than three years before the making of the claim.
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(2) It shall be a defence to any claim for a repayment of an amount of levy that the repayment of that amount would unjustly enrich the claimant.
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(3) Sub-paragraph (4) applies for the purposes of sub-paragraph (2) where-
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(a) there is an amount paid by way of levy which (apart from sub-paragraph (2)) would fall to be the subject of a repayment of levy to any person ("person A"); and |
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(b) the whole or a part of the cost of the payment of that amount to the Commissioners has, for practical purposes, been borne by a person other than person A. |
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(4) Where, in a case to which this sub-paragraph applies, loss or damage has been or may be incurred by person A as a result of mistaken assumptions made in his case about the operation of any provisions relating to levy, that loss or damage shall be disregarded, except to the extent of the quantified amount, in the making of any determination as to-
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(a) whether or to what extent the repayment of an amount to person A would enrich him; or |
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(b) whether or to what extent any enrichment of person A would be unjust. |
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(5) In sub-paragraph (4) "the quantified amount" means the amount (if any) which is shown by person A to constitute the amount that would appropriately compensate him for loss or damage shown by him to have resulted, for any business carried on by him, from the making of the mistaken assumptions.
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(6) The reference in sub-paragraph (4) to provisions relating to levy is a reference to any provisions of-
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(a) any enactment or subordinate legislation (whether or not still in force) which relates to the levy or to any matter connected with it; or |
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(b) any notice published by the Commissioners under or for the purposes of any enactment or subordinate legislation relating to the levy. |
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Reimbursement arrangements |
| | 64. - (1) The Commissioners may by regulations make provision for reimbursement arrangements made by any person to be disregarded for the purposes of paragraph 63(2) except where the arrangements-
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(a) contain such provision as may be required by the regulations; and |
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(b) are supported by such undertakings to comply with the provisions of the arrangements as may be required by the regulations to be given to the Commissioners. |
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(2) In this paragraph "reimbursement arrangements" means any arrangements for the purposes of a claim to a repayment of levy which-
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(a) are made by any person for the purpose of securing that he is not unjustly enriched by the repayment of any amount in pursuance of the claim; and |
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(b) provide for the reimbursement of persons who have for practical purposes borne the whole or any part of the cost of the original payment of that amount to the Commissioners. |
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(3) Without prejudice to the generality of sub-paragraph (1), the provision that may be required by regulations under this paragraph to be contained in reimbursement arrangements includes-
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(a) provision requiring a reimbursement for which the arrangements provide to be made within such period after the repayment to which it relates as may be specified in the regulations; |
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(b) provision for the repayment of amounts to the Commissioners where those amounts are not reimbursed in accordance with the arrangements; |
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(c) provision requiring interest paid by the Commissioners on any amount repaid by them to be treated in the same way as that amount for the purposes of any requirement under the arrangements to make reimbursement or to repay the Commissioners; |
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(d) provision requiring such records relating to the carrying out of the arrangements as may be described in the regulations to be kept and produced to the Commissioners, or to an officer of theirs. |
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(4) Regulations under this paragraph may impose obligations on such persons as may be specified in the regulations-
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(a) to make the repayments to the Commissioners that they are required to make in pursuance of any provisions contained in any reimbursement arrangements by virtue of sub-paragraph (3)(b) or (c); |
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(b) to comply with any requirements contained in any such arrangements by virtue of sub-paragraph (3)(d). |
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(5) Regulations under this paragraph may make provision for the form and manner in which, and the times at which, undertakings are to be given to the Commissioners in accordance with the regulations; and any such provision may allow for those matters to be determined by the Commissioners in accordance with the regulations.
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